LCO \\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05502-R01-
HB.docx
1 of 21
General Assembly Substitute Bill No. 5502
February Session, 2022
AN ACT CONCERNING THE OPERATIONS OF THE STATE
TREASURER AND THE BONDING AUTHORITY OF THE
CONNECTICUT MUNICIPAL REDEVELOPMENT AUTHORITY.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 8-169oo of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective from passage): 2
(a) The board of directors of the Connecticut Municipal 3
Redevelopment Authority is authorized from time to time to issue its 4
bonds, notes and other obligations in such principal amounts as in the 5
opinion of the board shall be necessary to provide sufficient funds for 6
carrying out the purposes set forth in section 8-169jj, as amended by this 7
act, including the payment, funding or refunding of the principal of, or 8
interest or redemption premiums on, any bonds, notes and other 9
obligations issued by it, whether the bonds, notes or other obligations 10
or interest to be funded or refunded have or have not become due, the 11
establishment of reserves to secure such bonds, notes and other 12
obligations, loans made by the authority and all other expenditures of 13
the authority incident to and necessary or convenient to carry out the 14
purposes set forth in section 8-169jj, as amended by this act. 15
(b) Every issue of bonds, notes or other obligations shall be a general 16
obligation of the authority payable out of any moneys or revenues of the 17 Substitute Bill No. 5502
LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05502-R01-
HB.docx }
2 of 21
authority and subject only to any agreements with the holders of 18
particular bonds, notes or other obligations pledging any particular 19
moneys or revenues. Any such bonds, notes or other obligations may be 20
additionally secured by any grant or contributions from any 21
department, agency or instrumentality of the United States or person or 22
a pledge of any moneys, income or revenues of the authority from any 23
source whatsoever. 24
(c) Notwithstanding any other provision of any law, any bonds, notes 25
or other obligations issued by the authority pursuant to this section shall 26
be fully negotiable within the meaning and for all purposes of title 42a. 27
Any such bonds, notes or other obligations shall be legal investments 28
for all trust companies, banks, investment companies, savings banks, 29
building and loan associations, executors, administrators, guardians, 30
conservators, trustees and other fiduciaries and pension, profit-sharing 31
and retirement funds. 32
(d) Bonds, notes or other obligations of the authority shall be 33
authorized by resolution of the board of directors of the authority and 34
may be issued in one or more series and shall bear such date or dates, 35
mature at such time or times, in the case of any such note, or any renewal 36
thereof, not exceeding the term of years as the board shall determine 37
from the date of the original issue of such notes, and, in the case of 38
bonds, not exceeding thirty years from the date thereof, bear interest at 39
such rate or rates, be in such denomination or denominations, be in such 40
form, either coupon or registered, carry such conversion or registration 41
privileges, have such rank or priority, be executed in such manner, be 42
payable from such sources in such medium of payment at such place or 43
places within or without this state, and be subject to such terms of 44
redemption, with or without premium, as such resolution or resolutions 45
may provide. 46
(e) Bonds, notes or other obligations of the authority may be sold at 47
public or private sale at such price or prices as the board shall determine. 48
(f) Bonds, notes or other obligations of the authority may be refunded 49 Substitute Bill No. 5502
LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05502-R01-
HB.docx }
3 of 21
and renewed from time to time as may be determined by resolution of 50
the board, provided any such refunding or renewal shall be in 51
conformity with any rights of the holders of such bonds, notes or other 52
obligations. 53
(g) [Except as provided in section 8-169qq, bonds] Bonds, notes or 54
other obligations of the authority issued under the provisions of this 55
section shall not be deemed to constitute a debt or liability of the state 56
or of any political subdivision thereof other than the authority, or a 57
pledge of the faith and credit of the state or of any such political 58
subdivision other than the authority, and shall not constitute bonds or 59
notes issued or guaranteed by the state within the meaning of section 3-60
21, but shall be payable solely from the funds as provided in this section. 61
All such bonds, notes or other obligations shall contain on the face 62
thereof a statement to the effect that, unless otherwise provided by law, 63
neither the state of Connecticut nor any political subdivision thereof 64
other than the authority shall be obligated to pay the same or the interest 65
thereof except from revenues or other funds of the authority and that 66
neither the faith and credit nor the taxing power of the state of 67
Connecticut or of any political subdivision thereof other than the 68
authority is pledged to the payment of the principal of, or the interest 69
on, such bonds, notes or other obligations. 70
(h) Any resolution or resolutions authorizing the issuance of bonds, 71
notes or other obligations may contain provisions, except as limited by 72
existing agreements with the holders of bonds, notes or other 73
obligations, which shall be a part of the contract with the holders 74
thereof, as to the following: (1) The pledging of all or any part of the 75
moneys received by the authority to secure the payment of the principal 76
of and interest on any bonds, notes or other obligations or of any issue 77
thereof; (2) the pledging of all or part of the assets of the authority to 78
secure the payment of the principal of and interest on any bonds, notes 79
or other obligations or of any issue thereof; (3) the establishment of 80
reserves or sinking funds, the making of charges and fees to provide for 81
the same, and the regulation and disposition thereof; (4) limitations on 82 Substitute Bill No. 5502
LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05502-R01-
HB.docx }
4 of 21
the purpose to which the proceeds of sale of bonds, notes or other 83
obligations may be applied and pledging such proceeds to secure the 84
payment of the bonds, notes or other obligations, or of any issues 85
thereof; (5) limitations on the issuance of additional bonds, notes or 86
other obligations, the terms upon which additional bonds, bond 87
anticipation notes or other obligations may be issued and secured, the 88
refunding or purchase of outstanding bonds, notes or other obligations 89
of the authority; (6) the procedure, if any, by which the terms of any 90
contract with the holders of any bonds, notes or other obligations of the 91
authority may be amended or abrogated, the amount of bonds, notes or 92
other obligations the holders of which must consent thereto and the 93
manner in which such consent may be given; (7) limitations on the 94
amount of moneys to be expended by the authority for operating, 95
administrative or other expenses of the authority; (8) the vesting in a 96
trustee or trustees of such property, rights, powers and duties in trust as 97
the authority may determine, which may include any or all of the rights, 98
powers and duties of any trustee appointed by the holders of any bonds, 99
notes or other obligations and limiting or abrogating the right of the 100
holders of any bonds, notes or other obligations of the authority to 101
appoint a trustee or limiting the rights, powers and duties of such 102
trustee; (9) provision for a trust agreement by and between the authority 103
and a corporate trustee which may be any trust company or bank having 104
the powers of a trust company within or without the state, which 105
agreement may provide for the pledging or assigning of any assets or 106
income from assets to which or in which the authority has any rights or 107
interest, and may further provide for such other rights and remedies 108
exercisable by the trustee as may be proper for the protection of the 109
holders of any bonds, notes or other obligations of the authority and not 110
otherwise in violation of law. Such agreement may provide for the 111
restriction of the rights of any individual holder of bonds, notes or other 112
obligations of the authority. All expenses incurred in carrying out the 113
provisions of such trust agreement may be treated as a part of the cost 114
of operation of the authority. The trust agreement may contain any 115
further provisions which are reasonable to delineate further the 116
respective rights, duties, safeguards, responsibilities and liabilities of 117 Substitute Bill No. 5502
LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05502-R01-
HB.docx }
5 of 21
the authority, individual and collective holders of bonds, notes and 118
other obligations of the authority and the trustees; (10) covenants to do 119
or refrain from doing such acts and things as may be necessary or 120
convenient or desirable in order to better secure any bonds, notes or 121
other obligations of the authority, or which, in the discretion of the 122
authority, will tend to make any bonds, notes or other obligations to be 123
issued more marketable, notwithstanding that such covenants, acts or 124
things may not be enumerated herein; and (11) any other matters of like 125
or different character, which in any way affect the security or protection 126
of the bonds, notes or other obligations. 127
(i) Any pledge made by the authority of income, revenues or other 128
property shall be valid and binding from the time the pledge is made. 129
The income, revenue, such state taxes as the authority shall be entitled 130
to receive or other property so pledged and thereafter received by the 131
authority shall immediately be subject to the lien of such pledge without 132
any physical delivery thereof or further act, and the lien of any such 133
pledge shall be valid and binding as against all parties having claims of 134
any kind in tort, contract or otherwise against the authority, irrespective 135
of whether such parties have notice thereof. 136
(j) The board of directors of the authority is authorized and 137
empowered to obtain from any department, agency or instrumentality 138
of the United States any insurance or guarantee as to, or of or for the 139
payment or repayment of, interest or principal or both, or any part 140
thereof, on any bonds, notes or other obligations issued by the authority 141
pursuant to the provisions of this section and, notwithstanding any 142
other provisions of sections 8-169ii to 8-169ss, inclusive, to enter into any 143
agreement, contract or any other instrument whatsoever with respect to 144
any such insurance or guarantee except to the extent that such action 145
would in any way impair or interfere with the authority's ability to 146
perform and fulfill the terms of any agreement made with the holders 147
of the bonds, bond anticipation notes or other obligations of the 148
authority. 149
[(k) Neither the members of the board of directors of the authority 150 Substitute Bill No. 5502
LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05502-R01-
HB.docx }
6 of 21
nor any person executing bonds, notes or other obligations of the 151
authority issued pursuant to this section shall be liable personally on 152
such bonds, notes or other obligations or be subject to any personal 153
liability or accountability by reason of the issuance thereof, nor shall any 154
director, officer or employee of the authority be personally liable for 155
damage or injury caused in the performance of such director, officer or 156
employee's duties and within the scope of employment or appointment 157
as such director, officer or employee, provided the conduct of such 158
director, officer or employee was found not to have been wanton, 159
reckless, wilful or malicious. The authority shall protect, save harmless 160
and indemnify its directors, officers or employees from financial loss 161
and expense, including legal fees and costs, if any, arising out of any 162
claim, demand, suit or judgment by reason of alleged negligence or 163
alleged deprivation of any person's civil rights or any other act or 164
omission resulting in damage or injury, if the director, officer or 165
employee is found to have been acting in the discharge of his or her 166
duties or within the scope of his or her employment and such act or 167
omission is found not to have been wanton, reckless, wilful or 168
malicious.] 169
[(l)] (k) The board of directors of the authority [shall have power to] 170
may purchase bonds, notes or other obligations of the authority out of 171
any funds available for such purpose. The authority may hold, cancel or 172
resell such bonds, notes or other obligations subject to and in accordance 173
with agreements with holders of its bonds, notes and other obligations. 174
[(m)] (l) All moneys received pursuant to the authority of this section, 175
whether as proceeds from the sale of bonds or as revenues, shall be 176
deemed to be trust funds to be held and applied solely as provided in 177
this section. Any officer with whom, or any bank or trust company with 178
which, such moneys shall be deposited shall act as trustee of such 179
moneys and shall hold and apply the same for the purposes of section 180
8-169jj, as amended by this act, and the resolution authorizing the bonds 181
of any issue or the trust agreement securing such bonds may provide. 182
[(n)] (m) Any holder of bonds, notes or other obligations issued under 183 Substitute Bill No. 5502
LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05502-R01-
HB.docx }
7 of 21
the provisions of this section, and the trustee or trustees under any trust 184
agreement, except to the extent the rights herein given may be restricted 185
by any resolution authorizing the issuance of or any such trust 186
agreement securing such bonds, may, either at law or in equity, by suit, 187
action, mandamus or other proceeding, protect and enforce any and all 188
rights under the laws of the state or granted under this section or under 189
such resolution or trust agreement and may enforce and compel the 190
performance of all duties required by this section or by such resolution 191
or trust agreement to be performed by the authority or by any officer, 192
employee or agent of the authority, including the fixing, charging and 193
collecting of the rates, rents, fees and charges herein authorized and 194
required by the provisions of such resolution or trust agreement to be 195
fixed, established and collected. 196
[(o)] (n) The authority may make representations and agreements for 197
the benefit of the holders of any bonds, notes or other obligations of the 198
state which are necessary or appropriate to ensure the exclusion from 199
gross income for federal income tax purposes of interest on bonds, notes 200
or other obligations of the state from taxation under the Internal 201
Revenue Code of 1986, or any subsequent corresponding internal 202
revenue code of the United States, as amended from time to time, 203
including agreement to pay rebates to the federal government of 204
investment earnings derived from the investment of the proceeds of the 205
bonds, notes or other obligations of the authority. Any such agreement 206
may include: (1) A covenant to pay rebates to the federal government of 207
investment earnings derived from the investment of the proceeds of the 208
bonds, notes or other obligations of the authority; (2) a covenant that the 209
authority will not limit or alter its rebate obligations until its obligations 210
to the holders or owners of such bonds, notes or other obligations are 211
finally met and discharged; and (3) provisions to (A) establish trust and 212
other accounts which may be appropriate to carry out such 213
representations and agreements, (B) retain fiscal agents as depositories 214
for such funds and accounts, and (C) provide that such fiscal agents may 215
act as trustee of such funds and accounts. 216 Substitute Bill No. 5502
LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05502-R01-
HB.docx }
8 of 21
Sec. 2. Section 8-169qq of the general statutes is repealed and the 217
following is substituted in lieu thereof (Effective from passage): 218
(a) For the purposes of this section, "required minimum capital 219
reserve" means the maximum amount permitted to be deposited in a 220
special capital reserve fund by the Internal Revenue Code of 1986, or 221
any subsequent corresponding internal revenue code of the United 222
States, as amended from time to time, to permit the interest on the bonds 223
of the Connecticut Municipal Redevelopment Authority secured by 224
such special capital reserve fund to be excluded from gross income for 225
federal tax purposes. 226
(b) The authority may, in connection with the issuance of bonds, the 227
refunding of bonds previously issued by the authority or the issuance 228
of bonds to effect a refinancing or other restructuring with respect to one 229
or more projects, establish one or more special capital reserve funds. The 230
authority may pay into such special capital reserve funds (1) any 231
moneys appropriated and made available by the state for the purposes 232
of such special capital reserve funds, (2) any proceeds of the sale of 233
bonds or notes of the authority, to the extent provided in the resolution 234
of said authority authorizing the issuance of such bonds or notes, and 235
(3) any moneys made available to the authority from any other source 236
for the purposes of such special capital reserve funds. The amount of 237
bonds of the authority secured by special capital reserve funds shall not 238
exceed fifty million dollars in the aggregate. 239
(c) (1) Except as otherwise provided in this section, the moneys held 240
in or credited to any special capital reserve fund established under this 241
section shall be used for: 242
(A) The payment of the principal and interest as such payments 243
become due, whether due at maturity or by mandatory sinking fund 244
installments, on bonds of the authority secured by such special capital 245
reserve fund; or 246
(B) The purchase of such bonds and the payment of any redemption 247 Substitute Bill No. 5502
LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05502-R01-
HB.docx }
9 of 21
premium required to be paid when such bonds are redeemed prior to 248
maturity, including reimbursement of a provider of bond insurance or 249
of a credit or liquidity facility that has paid such redemption premium. 250
(2) The authority may prohibit, except for the purpose of paying the 251
principal of and interest and redemption premium on bonds of the 252
authority secured by a special capital reserve fund for which other 253
moneys of the authority are not available, the withdrawal of moneys in 254
any special capital reserve fund in an amount that would result in the 255
balance of such special capital reserve fund being less than (A) the 256
maximum amount of principal and interest becoming due by reason of 257
maturity or a required sinking fund installment on the bonds of the 258
authority outstanding in the then current or any succeeding calendar 259
year, or (B) the required minimum capital reserve. 260
(3) The authority may provide at any time that it shall not issue bonds 261
secured by a special capital reserve fund if the required minimum 262
capital reserve on the bonds outstanding and the bonds to be issued and 263
secured by the same special capital reserve fund at the time of issuance 264
exceeds the moneys in the special capital reserve fund, unless the 265
authority deposits proceeds from the bonds to be issued or moneys from 266
other sources into such special capital reserve fund, in an amount that, 267
together with the amount then in such special capital reserve fund, will 268
be not less than the required minimum capital reserve. 269
(d) (1) (A) Prior to December first, annually, the authority shall 270
deposit, for any special capital reserve fund for which the balance is 271
below the required minimum capital reserve, the full amount required 272
to meet the required minimum capital reserve for such special capital 273
reserve fund. Such deposit shall be made from any resources available 274
to the authority not otherwise pledged or dedicated to another purpose. 275
(B) On or prior to December first, annually, but after the authority has 276
made any deposits required under subparagraph (A) of this 277
subdivision, there shall be deemed appropriated from the General Fund 278
any sums necessary to restore the balance of each such special capital 279 Substitute Bill No. 5502
LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05502-R01-
HB.docx }
10 of 21
reserve fund to the required minimum capital reserve amount. The 280
amount of any such sum shall be allotted and paid to the authority upon 281
the certification of such sum by the chairperson or vice-chairperson of 282
the authority to the Secretary of the Office of Policy and Management, 283
the Treasurer and the joint standing committees of the General 284
Assembly having cognizance of matters relating to planning and 285
development and finance, revenue and bonding. For the purposes of 286
this subdivision, obligations acquired as an investment for any special 287
capital reserve fund shall be valued at amortized cost. 288
(2) Subject to any agreement or agreements with holders of 289
outstanding bonds or notes of the authority, any amount allotted and 290
paid to the authority pursuant to subdivision (1) of this subsection shall 291
be repaid to the state from moneys of the authority, at such time as such 292
moneys are not required for any other corporate purposes of the 293
authority. Such repayment shall occur not later than one year after the 294
date the following liabilities are met and fully discharged by the 295
authority: (A) All bonds and notes of the authority that were issued 296
before, on or after the date such allotted amount was paid to the 297
authority; (B) all interest on such bonds and notes and on any unpaid 298
installments of interest; and (C) all costs and expenses incurred in 299
connection with any action or proceeding by or on behalf of the holders 300
of such bonds or notes. 301
(e) (1) The authority shall not issue bonds secured by a special capital 302
reserve fund until and unless: 303
(A) The authority has determined, and has provided such 304
determination to the Secretary of the Office of Policy and Management 305
or the secretary's deputy and to the Treasurer or the Deputy Treasurer, 306
that the revenues from the project shall be sufficient to (i) pay the 307
principal of and interest on the bonds issued to finance the project, (ii) 308
establish, increase and maintain any reserves deemed advisable by the 309
authority to secure the payment of the principal of and interest on such 310
bonds, (iii) pay the cost of maintaining the project in good repair and 311
properly insured, and (iv) pay such other costs of the project as may be 312 Substitute Bill No. 5502
LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05502-R01-
HB.docx }
11 of 21
required; 313
(B) The issuance has been approved by the Secretary of the Office of 314
Policy and Management or the secretary's deputy; and 315
(C) The authority has provided the documentation required under 316
subsection (a) of section 1-124 to the Treasurer or the Deputy Treasurer 317
and the issuance has been approved by the Treasurer or the Deputy 318
Treasurer pursuant to said subsection. 319
(2) The approval by the Secretary of the Office of Policy and 320
Management or the secretary's deputy may provide for the waiver or 321
modification of the requirements of this section as the secretary deems 322
necessary or appropriate to effectuate such issuance, subject to any 323
applicable tax covenants of the authority and the state. 324
(f) Nothing in this section shall preclude the authority from 325
establishing other debt service reserve funds that are not special capital 326
reserve funds in connection with the issuance of bonds or notes of the 327
authority. 328
(g) (1) The provisions of this subsection shall not apply to any 329
financial loss and expenses arising out of any claim, demand, suit, 330
judgment or legal challenge described in this subsection filed on or after 331
the effective date of this section. 332
[(a)] (2) The state shall protect, save harmless and indemnify the 333
directors, officers and employees of the Connecticut Municipal 334
Redevelopment Authority from financial loss and expenses, including 335
legal fees and costs, if any, arising out of any claim, demand, suit or 336
judgment based upon any alleged act or omission of any such director, 337
officer or employee in connection with, or any other legal challenge to, 338
authority development projects within a Connecticut Municipal 339
Redevelopment Authority development district, provided any such 340
director, officer or employee is found to have been acting in the 341
discharge of such director, officer or employee's duties or within the 342
scope of such director, officer or employee's employment and any such 343 Substitute Bill No. 5502
LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05502-R01-
HB.docx }
12 of 21
act or omission is found not to have been wanton, reckless, wilful or 344
malicious. 345
[(b) In the event any bond, note or other obligation of the authority 346
cannot be paid by the authority, the state shall assume the liability of 347
and make payment on such debt.] 348
Sec. 3. (NEW) (Effective from passage) (a) As used in this section, (1) 349
"person" means any (A) state officer, (B) state agency, department, board 350
or commission, or (C) state employee, or any agent thereof. "Person" 351
includes The University of Connecticut Health Care Finance 352
Corporation, and (2) "financial obligation" has the same meaning as 353
provided in 17 CFR 240.15c2-12, as amended from time to time. 354
(b) (1) Before any person incurs any financial obligation of the state 355
or enters into any agreement to covenants, events of default, remedies, 356
priority rights or other similar terms in connection with a financial 357
obligation of the state, where such financial obligation (A) is in excess of 358
one million dollars, or (B) encumbers property or rights of the state 359
material to the operations of the state, such person shall notify the 360
Treasurer of such proposed financial obligation or agreement and 361
submit any documents pursuant to which such financial obligation is to 362
be incurred or such agreement is to be entered into. No such person shall 363
incur any such financial obligation or enter into any such agreement 364
until such person has received a written acknowledgment pursuant to 365
subdivision (2) of this subsection. 366
(2) Upon receipt of such notification and documents, the Treasurer 367
shall determine whether the information provided is adequate for the 368
Treasurer to timely meet required disclosure obligations under federal 369
securities law. The Treasurer may request additional information the 370
Treasurer deems necessary to make such determination. Upon the 371
Treasurer's satisfaction that adequate information has been provided for 372
the Treasurer to timely meet required disclosure obligations under 373
federal securities law, the Treasurer or the Treasurer's designee shall 374
provide written acknowledgment to the person seeking to incur such 375 Substitute Bill No. 5502
LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05502-R01-
HB.docx }
13 of 21
financial obligation or enter into such agreement. The Treasurer may 376
establish, and revise from time to time, exemptions from such 377
notification and submission requirements as the Treasurer determines 378
are consistent with the state's disclosure obligations under federal 379
securities law. 380
Sec. 4. Subsection (x) of section 3-20 of the general statutes is repealed 381
and the following is substituted in lieu thereof (Effective July 1, 2022): 382
(x) Notwithstanding any provision of the general statutes, public acts 383
or special acts, [upon] any sale, lease or other disposition to or use by a 384
nongovernmental entity of all or a portion of any project financed with 385
proceeds of bonds of the state the interest on which is not included in 386
gross income pursuant to Section 103 of the Internal Revenue Code of 387
1986, or any subsequent corresponding internal revenue code of the 388
United States, as amended from time to time, [amended,] that would 389
otherwise cause such bonds to be treated as private activity bonds 390
within the meaning of Section 141 of said internal revenue code [, the] 391
shall be subject to the prior approval of the Treasurer. The Treasurer is 392
authorized to transfer all or a portion of the proceeds received with 393
respect to and at the time of such disposition or use, in an amount not 394
less than the amount required by said internal revenue code to preserve 395
the exclusion from gross income of interest on such bonds, (1) to the 396
General Fund to pay debt service on, including redemption, defeasance 397
or purchase of, outstanding bonds of the state the interest on which is 398
not included in gross income pursuant to Section 103 of said internal 399
revenue code, (2) with the approval of the State Bond Commission, in 400
lieu of the issuance of bonds, to the appropriate account or fund for any 401
projects or purposes authorized by the State Bond Commission 402
pursuant to a bond act and with the same force and effect as bond 403
proceeds, thereby reducing the authority to issue bonds by such dollar 404
amount, provided in any event that any such transfer does not cause the 405
interest on the subject bonds to become included in gross income 406
pursuant to Section 103 of said internal revenue code. 407
Sec. 5. Subsection (a) of section 3-37 of the general statutes is repealed 408 Substitute Bill No. 5502
LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05502-R01-
HB.docx }
14 of 21
and the following is substituted in lieu thereof (Effective July 1, 2022): 409
(a) The Treasurer shall, annually, on or before December thirty-first, 410
submit a final audited report to the Governor and a copy of such report 411
to the Investment Advisory Council, which shall include the following 412
information concerning the activities of the office of the State Treasurer 413
for the immediately preceding fiscal year ending June thirtieth: (1) 414
Complete financial statements and accompanying footnotes for the 415
combined investment funds prepared in accordance with generally 416
accepted accounting principles, which financial statements shall be 417
audited in accordance with generally accepted auditing standards and 418
supplementary schedules depicting the interests of the component 419
retirement plans and trust funds; (2) complete financial statements and 420
accompanying footnotes for the Short Term Investment Fund prepared 421
in accordance with generally accepted accounting principles and 422
supplementary schedules listing all assets held by the Short Term 423
Investment Fund; (3) a discussion and review of the performance of the 424
combined investment funds and Short Term Investment Fund for such 425
fiscal year in accordance with recognized and appropriate performance 426
presentation and disclosure, including an analysis of the return earned 427
by the portfolio and each combined investment fund as well as the risk 428
profile of the portfolio and each combined investment fund according 429
to investment industry standards; (4) the activities and transactions in 430
such reasonable detail as is appropriate of the cash management 431
division including information on the state's cash receipts and 432
disbursements for the fiscal year, and the debt management division; 433
[including the financial statements of the tax-exempt proceeds fund 434
prepared in accordance with generally accepted accounting principles;] 435
(5) financial statements and accompanying footnotes as well as a 436
summary of operating results for the Second Injury Fund for such fiscal 437
year; (6) a financial summary and report on the activities of the state's 438
unclaimed property program for such fiscal year; (7) a listing of the 439
companies from which state funds were divested based upon such 440
companies' business in Sudan, pursuant to the provisions of section 3-441
21e, and any companies identified by the Treasurer as companies from 442 Substitute Bill No. 5502
LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05502-R01-
HB.docx }
15 of 21
which investment of state funds has been declared impermissible by the 443
Treasurer, pursuant to the provisions of section 3-21e; and (8) such other 444
information as the Treasurer deems of interest to the public. 445
Sec. 6. Subsection (q) of section 3-62h of the general statutes is 446
repealed and the following is substituted in lieu thereof (Effective July 1, 447
2022): 448
(q) Any moneys held by the Treasurer or by a trustee pursuant to an 449
indenture of trust with respect to abandoned property fund bonds 450
including pledged revenues, other pledged receipts, funds or moneys 451
and proceeds from the sale of such abandoned property fund bonds, 452
may, pending the use or application of the proceeds thereof for an 453
authorized purpose, be (1) invested and reinvested in such obligations, 454
securities and investments as are set forth in subsection (f) of section 3-455
20 [,] and in participation certificates in the Short Term Investment 456
Funds created under sections 3-27a and 3-27f, [and in participation 457
certificates or securities of the Tax-Exempt Proceeds Fund created under 458
section 3-24a] or (2) deposited or redeposited in such bank or banks as 459
shall be provided in the proceedings. Unless the proceedings provide 460
otherwise, proceeds from investments authorized by this subsection, 461
less amounts required under the proceedings authorizing the issuance 462
of abandoned property fund bonds for the payment of Specia l 463
Abandoned Property Fund financing costs relating to such abandoned 464
property fund bonds, shall be credited to the Special Abandoned 465
Property Fund. 466
Sec. 7. Subsection (d) of section 7-406n of the general statutes is 467
repealed and the following is substituted in lieu thereof (Effective July 1, 468
2022): 469
(d) Any moneys held by the Treasurer or by a trustee pursuant to an 470
indenture of trust with respect to municipal pension solvency account 471
bonds including pledged revenues, other pledged receipts, funds or 472
moneys and proceeds from the sale of such municipal pension solvency 473
account bonds, may, pending the use or application of such proceeds 474 Substitute Bill No. 5502
LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05502-R01-
HB.docx }
16 of 21
for an authorized purpose, be (1) invested and reinvested in such 475
obligations, securities and investments as are set forth in subsection (f) 476
of section 3-20 [,] and in participation certificates in the Short Term 477
Investment Funds created under sections 3-27a and 3-27f, [and in 478
participation certificates or securities of the Tax-Exempt Proceeds Fund 479
created under section 3-24a,] or (2) deposited or redeposited in such 480
bank or banks as shall be provided in the proceedings authorizing the 481
issuance of municipal pension solvency account bonds. Unless the 482
proceedings provide otherwise, proceeds from investments authorized 483
by this subsection, less amounts required under the proceedings for the 484
payment of municipal pension solvency loan costs relating to such 485
municipal pension solvency account bonds, shall be credited to the 486
municipal pension solvency account. 487
Sec. 8. Subdivision (9) of subsection (b) of section 8-169jj of the general 488
statutes is repealed and the following is substituted in lieu thereof 489
(Effective July 1, 2022): 490
(9) Invest any funds not needed for immediate use or disbursement 491
in obligations issued or guaranteed by the United States or the state, 492
including the Short Term Investment Fund, [and the Tax-Exempt 493
Proceeds Fund,] and in other obligations that are legal investments for 494
savings banks in this state, and in-time deposits or certificates of deposit 495
or other similar banking arrangements secured in such manner as the 496
authority determines; 497
Sec. 9. Subsection (b) of section 8-336o of the general statutes is 498
repealed and the following is substituted in lieu thereof (Effective July 1, 499
2022): 500
(b) Any moneys held in the Housing Trust Fund may, pending the 501
use or application of the proceeds thereof for an authorized purpose, be 502
(1) invested and reinvested in such obligations, securities and 503
investments as are set forth in subsection (f) of section 3-20 [,] and in 504
participation certificates in the Short Term Investment Fund created 505
under sections 3-27a and 3-27f, [and in participation certificates or 506 Substitute Bill No. 5502
LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05502-R01-
HB.docx }
17 of 21
securities of the Tax-Exempt Proceeds Fund created under section 3-507
24a,] (2) deposited or redeposited in such bank or banks at the direction 508
of the Treasurer, or (3) invested in participation units in the combined 509
investment funds, as defined in section 3-31b. Unless otherwise 510
provided pursuant to subsection (c) of this section, proceeds from 511
investments authorized by this subsection shall be credited to the 512
Housing Trust Fund. 513
Sec. 10. Subdivision (3) of subsection (a) of section 10-283 of the 2022 514
supplement to the general statutes is repealed and the following is 515
substituted in lieu thereof (Effective July 1, 2022): 516
(3) (A) All final calculations completed by the Department of 517
Administrative Services for school building projects shall include a 518
computation of the state grant for the school building project amortized 519
on a straight line basis over a twenty-year period for school building 520
projects with costs equal to or greater than two million dollars and over 521
a ten-year period for school building projects with costs less than two 522
million dollars. Any town or regional school district which abandons, 523
sells, leases, demolishes or otherwise redirects the use of such a school 524
building project to other than a public school use during such 525
amortization period shall refund to the state the unamortized balance of 526
the state grant remaining as of the date the abandonment, sale, lease, 527
demolition or redirection occurs. The amortization period for a project 528
shall begin on the date the project was accepted as complete by the local 529
or regional board of education. A town or regional school district 530
required to make a refund to the state pursuant to this subdivision may 531
request forgiveness of such refund if the building is redirected for public 532
use. The Department of Administrative Services shall include as an 533
addendum to the annual school construction priority list all those towns 534
requesting forgiveness. General Assembly approval of the priority list 535
containing such request shall constitute approval of such request. This 536
subdivision shall not apply to projects to correct safety, health and other 537
code violations or to remedy certified school indoor air quality 538
emergencies approved pursuant to subsection (b) of this section or 539 Substitute Bill No. 5502
LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05502-R01-
HB.docx }
18 of 21
projects subject to the provisions of section 10-285c. 540
(B) If the board of governors for an independent institution of higher 541
education, as defined in subsection (a) of section 10a-173, or the 542
equivalent of such a board, on behalf of the independent institution of 543
higher education, that operates an interdistrict magnet school makes 544
private use of any portion of a school building in which such operator 545
received a school building project grant pursuant to this chapter, such 546
operator shall annually submit a report to the Commissioner of 547
Education that demonstrates that such operator provides an equal to or 548
greater than in-kind or supplemental benefit of such institution's 549
facilities to students enrolled in such interdistrict magnet school that 550
outweighs the private use of such school building. If the commissioner 551
finds that the private use of such school building exceeds the in-kind or 552
supplemental benefit to magnet school students, the commissioner may 553
require such institution to refund to the state the unamortized balance 554
of the state grant. 555
[(C) Any moneys refunded to the state pursuant to subparagraphs 556
(A) and (B) of this subdivision shall be deposited in the state's tax-557
exempt proceeds fund and used not later than sixty days after 558
repayment to pay debt service on, including redemption, defeasance or 559
purchase of, outstanding bonds of the state the interest on which is not 560
included in gross income pursuant to Section 103 of the Internal 561
Revenue Code of 1986, or any subsequent corresponding internal 562
revenue code of the United States, as from time to time amended.] 563
Sec. 11. Subsection (b) of section 22a-260a of the general statutes is 564
repealed and the following is substituted in lieu thereof (Effective July 1, 565
2022): 566
(b) Wherever the words "Connecticut Resources Recovery Authority" 567
are used in any public or special act of 2014 or in the following sections 568
of the general statutes, the words "Materials Innovation and Recycling 569
Authority" shall be substituted in lieu thereof: 1-79, 1-120, 1-124, 1-125, 570
[3-24d, 3-24f,] 7-329a, 12-412, 12-459, 16-1, 16-245, 16-245b, 22a-208a, 22a-571 Substitute Bill No. 5502
LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05502-R01-
HB.docx }
19 of 21
208v, 22a-209h, 22a-219b, 22a-220, 22a-241, 22a-260, 22a-261, 22a-263a, 572
22a-263b, 22a-268a, 22a-268b, 22a-270a, 22a-272a, 22a-282, 22a-283, 22a-573
284, 32-1e and 32-658. 574
Sec. 12. Subsection (b) of section 32-7o of the general statutes is 575
repealed and the following is substituted in lieu thereof (Effective July 1, 576
2022): 577
(b) Any moneys held in the Connecticut Manufacturing Innovation 578
Fund may, pending the use or application of the proceeds thereof for an 579
authorized purpose, be (1) invested and reinvested in such obligations, 580
securities and investments as are set forth in subsection (f) of section 3-581
20 [,] and in participation certificates in the Short Term Investment Fund 582
created under sections 3-27a and 3-27f, [and in participation certificates 583
or securities of the Tax-Exempt Proceeds Fund created under section 3-584
24a,] (2) deposited or redeposited in any bank or banks, at the direction 585
of the Treasurer, or (3) invested in participation units in the combined 586
investment funds, as defined in section 3-31b. Proceeds from 587
investments authorized by this subsection shall be credited to the 588
Connecticut Manufacturing Innovation Fund. 589
Sec. 13. Subdivision (1) of subsection (a) of section 32-11f of the 590
general statutes is repealed and the following is substituted in lieu 591
thereof (Effective July 1, 2022): 592
(a) (1) Wherever the term "Connecticut Development Authority" is 593
used in the following sections of the general statutes, the term 594
"Connecticut Innovations, Incorporated" shall be substituted in lieu 595
thereof: [3-24d, 3-24f,] 3-99d, 8-134, 8-134a, 8-192, 8-192a, 8-240m, 13b-596
79w, 16-243v, 22a-134, 22a-173, 22a-259, 22a-264, 25-33a, 32-1l, 32-3, 32-597
4l, 32-6j, 32-9c, 32-9n, 32-9qq, 32-22b, 32-23l, 32-23o, 32-23q, 32-23r, 32-598
23s, 32-23t, 32-23v, 32-23x, 32-23z, 32-23aa, 32-23qq, 32-23ss, 32-23tt, 32-599
31a, 32-61, 32-68a, 32-141, 32-222, 32-223, 32-227, 32-244, 32-244a, 32-262, 600
32-263, 32-265, 32-266, 32-285, 32-341, 32-477, 32-500, 32-503, 32-609, 32-601
761, 32-763 and 32-768. 602 Substitute Bill No. 5502
LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05502-R01-
HB.docx }
20 of 21
Sec. 14. Subsection (b) of section 32-602 of the general statutes is 603
repealed and the following is substituted in lieu thereof (Effective July 1, 604
2022): 605
(b) For these purposes, the authority shall have the following powers: 606
(1) To have perpetual succession as a body corporate and to adopt 607
procedures for the regulation of its affairs and the conduct of its business 608
as provided in subsection (f) of section 32-601, to adopt a corporate seal 609
and alter the same at its pleasure, and to maintain an office at such place 610
or places within the city of Hartford as it may designate; (2) to sue and 611
be sued, to contract and be contracted with; (3) to employ such 612
assistants, agents and other employees as may be necessary or desirable 613
to carry out its purposes, which employees shall be exempt from the 614
classified service and shall not be employees, as defined in subsection 615
(b) of section 5-270, to fix their compensation, to establish and modify 616
personnel procedures as may be necessary from time to time and to 617
negotiate and enter into collective bargaining agreements with labor 618
unions; (4) to acquire, lease, hold and dispose of personal property for 619
the purposes set forth in this section; (5) to procure insurance against 620
any liability or loss in connection with its property and other assets, in 621
such amounts and from such insurers as it deems desirable and to 622
procure insurance for employees; (6) to invest any funds not needed for 623
immediate use or disbursement in obligations issued or guaranteed by 624
the United States of America or the state of Connecticut, including the 625
Short Term Investment Fund, [and the Tax-Exempt Proceeds Fund,] and 626
in other obligations which are legal investments for savings banks in 627
this state and in time deposits or certificates of deposit or other similar 628
banking arrangements secured in such manner as the authority 629
determines; (7) notwithstanding any other provision of the general 630
statutes, upon request of the Secretary of the Office of Policy and 631
Management, to enter into an agreement for funding to facilitate the 632
relocation of state offices within the capital city economic development 633
district; (8) to enter into such memoranda of understanding as the 634
authority deems appropriate to carry out its responsibilities under this 635
chapter; and (9) to do all acts and things necessary or convenient to carry 636 Substitute Bill No. 5502
LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05502-R01-
HB.docx }
21 of 21
out the purposes of and the powers expressly granted by this section. 637
Sec. 15. Sections 3-24a to 3-24h, inclusive, of the general statutes are 638
repealed. (Effective July 1, 2022) 639
This act shall take effect as follows and shall amend the following
sections:
Section 1 from passage 8-169oo
Sec. 2 from passage 8-169qq
Sec. 3 from passage New section
Sec. 4 July 1, 2022 3-20(x)
Sec. 5 July 1, 2022 3-37(a)
Sec. 6 July 1, 2022 3-62h(q)
Sec. 7 July 1, 2022 7-406n(d)
Sec. 8 July 1, 2022 8-169jj(b)(9)
Sec. 9 July 1, 2022 8-336o(b)
Sec. 10 July 1, 2022 10-283(a)(3)
Sec. 11 July 1, 2022 22a-260a(b)
Sec. 12 July 1, 2022 32-7o(b)
Sec. 13 July 1, 2022 32-11f(a)(1)
Sec. 14 July 1, 2022 32-602(b)
Sec. 15 July 1, 2022 Repealer section
FIN Joint Favorable Subst.